Dead Letter Office: USPS Cuts Services. Nobody Cares.

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  1. #1
    Senior Member Baits Out's Avatar
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    Dead Letter Office: USPS Cuts Services. Nobody Cares.

    When a profit-seeking firm sees that no one wants its services, it finds ways to lower prices and improve services.

    The United States Postal Service does what government agencies do: it raises prices and cuts services.

    In its press release announcing the cessation of Saturday delivery of mail in August, we learn the following.

    WASHINGTON — The United States Postal Service announced plans today to transition to a new delivery schedule during the week of Aug. 5, 2013 that includes package delivery Monday through Saturday, and mail delivery Monday through Friday. The Postal Service expects to generate cost savings of approximately $2 billion annually, once the plan is fully implemented.

    Let’s analyze this. It will save $2 billion a year. What is its budget? The press release has this is at the end. “With 32,000 retail locations and the most frequently visited website in the federal government, usps.com®, the Postal Service has annual revenue of approximately $65 billion and delivers nearly 40 percent of the world’s mail.” So, the $2 billion in savings is 3% of its budget. So, to save 3%, it reduces its delivery of mail by 16.6%.

    Why didn’t it just fire 3% of its work force? Or 5%? Because its work force is unionized. So, it stiffed the participants with no clout: the public, who cannot strike. Instead of firing anyone, we learn the following: “The operational plan for the new delivery schedule anticipates a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.” Attrition? That means “quits, retires, or dies.” That means “leaving a tenured job that pays above-market wages.” That means later. Much later.

    You know a government agency is in big trouble whenever it uses the word “challenge.” It is dead in the water if it uses “challenges.” In government circles, the word means “politically unsolvable; therefore, kick the can.” We read:

    Given the ongoing financial challenges, the Postal Service Board of Governors last month directed postal management to accelerate the restructuring of Postal Service operations in order to strengthen Postal Service finances.

    So, its problems are “outside the Postal Service’s control.” These problems are not mentioned: email, social media, Skype, and similar free services. You know: the free market. In the good old days, the Post Office had a government-mandated monopoly. It could keep out competitors, and it did. But now all this has changed. A gigantic government bureaucracy lost its political mojo after 300 years. Congress revoked the monopoly. The Internet took over.

    Then what is the solution? A government bailout, of course.

    While the change in the delivery schedule announced today is one of the actions needed to restore the financial health of the Postal Service, legislative change is urgently needed to address matters outside the Postal Service’s control. The Postal Service continues to seek legislation to provide it with greater flexibility to control costs and generate new revenue and encourages the 113th Congress to make postal reform legislation an urgent priority.

    We are assured: “The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.” Then what has Congress got to do with it? Why is “legislative change” necessary? Because the USPS is still a government enterprise. in the words of the press release, it is “A self-supporting government enterprise.” Enterprise? What enterprise? There is no enterprise at the USPS. There are only price hikes and service reductions.

    This is government at its best. This is as good as it gets. The Post Office used to get the federal government to fine competitors and put them out of business. Now it can only cut Saturday services.

    One reform will work: sever all of its connections with the government. Turn it into a purely free market enterprise. See what happens. I know what would happen. No Friday deliveries. Then no Thursday deliveries. Then no mail deliveries at all.

    No one would notice.

    The USPS wants a bailout. It wants permanent bailouts. Let’s hope Congress says no. Return to sender.

    http://teapartyeconomist.com/2013/02...#ixzz2KE0tuip8
    The desperate and fragile fantasy-land collectivist dreams must be shielded from the bright lights of logic and rational thought.

    " Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. "
    --- Albert Einstein

    "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy; its inherent virtue is the equal sharing of misery."
    – Winston Churchill

  2. #2
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    Quote Originally Posted by Baits Out View Post
    When a profit-seeking firm sees that no one wants its services, it finds ways to lower prices and improve services.
    Lets not pretend like UPS and Fed-Ex are worthy of mailing packages. They suck. I've had UPS break two guitars on the way to me and my mom had a sewing machine that literally looked like it had been ran over.

    I LOVE the USPS. And I LOVED Sat delivery. The government isnt meant to run a profit.

    Understand this point - if the government is going to spend (and lose money) on something at least we should BENEFIT from it!!!! Unlike Iraq and having troops spread out in Germany, Japan, France, and all the other places they shouldnt be.

    I've never had an issue with shipping with USPS. Out of tons of deliveries only ONE was ever later then it should have been...but it eventually arrived...and in one damn piece!

    I have a better idea of saving WAAAAAAY more than 2 billion dollars a year. How about f;king bringing home our troops? That way we still get the best mail service and actually benefit from the proper and intended use of government!

    I know...what a concept!
    Economists, scientists, and moms overwhelmingly supported Obama.

  3. #3
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    The congress we elect to make our decisions in this Republic.... i.e. your favorite retort when I use the D word Democracy.... are responsible for much of the Post Office's financial problems. Our elected representatives force the Post Office to pay about $5.5 billion a year into future retiree health benefits. Have you written your representative to thank him/her?

  4. #4
    Senior Member HomerSimpson's Avatar
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    Go into a Post Office and you will see the main reason they are bleeding money.

    Have no idea why one would think the USPS is better than UPS or Fed Ex, i'm assuming its to promote a pro government agenda, but hey, to each their own.


    All that said, the post office is mandated by the constitution and has heavy gov't oversight. The intent was to put mail access above profit to ensure everyone has mail. The USPS has that to battle, but they haven't helped their cause

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